GBP/JPY Price Forecast December 11, 2017, Technical Analysis

The British pound continues to be very volatile, especially against the Japanese yen. We reached towards the vital 153 handle during the trading session on Friday, an area that has been massively resistive. If we can break above the highs of the day, then I think that the market goes much higher, perhaps even looking for the 160 handle over the longer term. A break out from that level should send this market looking for much higher levels in rather short order, because this pair does tend to move very rapidly. However, we could pull back from here and I think that would only offer more value closer to the 150 level as it is a very psychologically important level.
In general, I believe that the markets continue to be very noisy, but keep in mind that this is a bit of a “risk on” type of environment when we go higher. If that’s the case, and there’s a lot of bullish sentiment around the world, it’s probably only a matter of time before this pair rallies. Keep your position size small though, is probably the best way to protect yourself as there is so much in the way of damage that can be done in this pair, and in short order. However, once we make a “higher high”, it’s possible to add to your position slowly so that you can benefit from a much longer-term move. If we were to break down below the 150 handle, that would change the medium-term outlook and have me reassessing the entire situation.